Environment

UK Treasury budget documents confirm plans to consult on adding refined oil products including petrol, diesel and jet fuel to the 2027 Carbon Border Adjustment Mechanism. The move aims to protect domestic refineries from carbon leakage and support decarbonisation while maintaining industrial capability. It broadens the UK CBAM beyond initial sectors like steel and cement, potentially raising costs for importers and affecting fuel supply chains. Read →

California Carbon Allowances traded back below $33 amid muted activity ahead of the November Q4 auction. Washington Carbon Allowances pulled back after touching $40 earlier in the week. The linked WCI markets remain in a narrow range with limited immediate catalysts. Read →

EU carbon allowance prices fluctuated with energy markets on Thursday but posted a marginal daily gain and extended the recent advance to a fresh nine-month high. Strong correlation with natural gas and power prices, plus geopolitical and weather factors, underpinned buying. The Dec 2026 contract traded near €89. Read →

European carbon allowances resumed their advance Wednesday to a new nine-month high after shrugging off Tuesday's session. The move was driven by surging European natural gas prices that breached €100/MWh for the first time since 2022 amid colder weather forecasts and reduced wind generation. Tighter energy markets support higher power-sector emissions and EUA demand through year-end. Read →

The UK government announced in its Autumn Budget that it will expand the incoming Carbon Border Adjustment Mechanism to include refined products. The British fuels industry welcomed the move as a boost to competitiveness against imports facing the EU CBAM. The expansion aligns UK policy more closely with EU border carbon measures affecting emissions-intensive sectors. Read →

European carbon allowance prices traded around €88 and briefly reached a nine-month high Tuesday before closing slightly lower, supported by energy market strength despite some softening in power and gas prices. The move reflects sustained buying interest tied to colder weather forecasts and bullish year-end outlooks. Higher EUA prices tighten compliance costs for covered emitters in power and industry. Read →

Bank of America Global Research forecasts EUAs could reach €100/t this winter as elevated natural gas prices linked to the Iran conflict make coal-fired generation more economic, boosting emissions and allowance demand. The bank notes limited coal capacity may cap the switch but highlights CBAM and free-allocation phase-out as additional supports. Prices are seen moderating below €80/t in H2 2027 as LNG supplies ease. Read →

Verra postponed the mandatory effective date for most VCS Version 5 requirements and templates from January 1 to July 1, 2027, after feedback on audit backlogs and VVB capacity. Projects can finish ongoing Version 4 work before transitioning. The delay provides more time for developers and verifiers but maintains the push for stronger safeguards and integrity standards in the voluntary market. Read →

EU carbon prices rose sharply Monday, posting the biggest daily gain in six weeks as colder weather forecasts cut wind generation and lifted natural gas and power prices. The Dec 2026 contract approached levels not seen in nine months amid bullish end-of-year outlooks. Higher fossil-fuel power demand tightens the near-term EUA balance and supports compliance buying. Read →

RGGI Allowance futures traded in the upper $39 range with little movement as traders cited a lack of near-term catalysts. The market lacks fresh supply or demand signals after recent auctions and policy updates. Flat prices reflect balanced supply-demand in the Northeast power-sector program. Read →

2026-vintage D6 RINs declined more sharply than D4 credits after September EMTS data showed strong ethanol output and a smaller-than-expected gasoline pool. The D4 premium widened to about 12 cents as D6 supply tracks closer to its requirement while D4 remains tighter. Strong biodiesel economics and pending EPA small-refinery exemption decisions keep the complex volatile. Read →

A new poll shows European carbon prices are expected to stay supported short-term by a tight allowance balance and higher fossil fuel power generation. However, analysts disagree sharply on how proposed EU ETS reforms will affect prices after 2030, creating uncertainty for longer-term market balance and investment decisions in the compliance market. Read →

California’s cap-and-invest program saw major adjustments this year that the Legislative Analyst’s Office projects will halve annual auction revenue by about $2 billion while granting polluters up to $4 billion in new free permits. The state is also advancing linkage with Washington’s market, expected to start next year and potentially lift California prices from recent minimums, but critics say the changes guarantee missed 2030 and 2045 emissions targets and hand major policy choices to the incoming governor. Read →

The Lao government signed an MoU with a major private infrastructure firm to develop a domestic carbon credit market and voluntary emissions-reduction standards, prioritizing wetland conservation and fuelwood reduction projects. The initiative supports national climate goals, NDCs, and green economy efforts through public-private cooperation in forestry, water, and land management. Read →

California Carbon Allowance futures ticked up toward $33 on heightened trading ahead of US midterm elections and the November Q4 auction. Washington Carbon Allowances rose to around $40. The moves reflect pre-election positioning in the linked WCI market. Read →

The European Parliament voted Thursday to raise free EU ETS allowances for industries in the ‘fallback’ benchmark category by nearly 100 million before 2030. The decision eases compliance costs for certain heavy emitters ahead of tighter benchmarks. It comes amid ongoing EU ETS reform talks that could affect overall allowance supply. Read →

EU carbon prices edged higher Thursday with little reaction to the prior day’s MSR adjustment decision. European gas prices settled above €90/MWh, their highest level since December 2022, pushing power prices above €150/MWh and supporting EUA demand via coal-to-gas dynamics. Read →

The Council of the EU and European Parliament provisionally agreed to raise the Market Stability Reserve invalidation threshold from 400 million to 700 million EUAs. The compromise keeps the invalidation mechanism but creates a larger buffer for supply-demand imbalances, taking effect after formal adoption. It supports long-term market liquidity and price stability ahead of the broader ETS review while aligning with 2040-2050 targets. Read →

California Air Resources Board proposed rules allowing covered entities under the Cap-and-Invest Program to reduce obligations via verified CO2 storage. Entities must contribute allowances or offsets to a new CCUS Buffer Account scaled by project risk rating as insurance against leaks or reversals. The framework implements SB 905 to support safe CCUS and CDR deployment with monitoring, financial responsibility, and permanence standards. Read →

The UK published its 2027 UK Allowance auction schedule with reduced sales volumes compared to prior years. The reserve price rises 3.6 percent. The changes signal tighter supply in the UK ETS, supporting prices amid ongoing compliance demand. Read →

European Union Allowances rallied in the afternoon Tuesday to post their first daily gain in more than a week after dropping to a nine-day low on a weak auction. Positive reports from Iran peace talks triggered sharp falls in energy prices midday, boosting sentiment and driving the recovery in the thin market. Read →

Conventional ethanol Renewable Identification Numbers (D6 RINs) fell to their lowest level in over four months at $1.75 per unit after the EPA extended a September compliance deadline for refiners and delayed decisions on small refinery exemptions. Biomass-based diesel RINs also weakened amid the regulatory uncertainty. Read →

The European Parliament’s environment committee voted Monday to increase free EU carbon permits for select industries before 2030, exceeding the Commission’s proposal to shield manufacturers from carbon leakage. The move adds near-term supply and could weigh on EUA prices while protecting industrial competitiveness under the ETS. Read →

European carbon prices closed Monday just 1 cent lower at around €85 after a robust primary auction lifted sentiment and kept the market above key technical support despite pressure from falling natural gas and coal prices. Energy markets also finished modestly firmer. Read →

RGGI Allowance futures traded quietly and range-bound around the $40 mark on Monday with no immediate market-moving events, leaving prices stable amid limited near-term catalysts for the northeastern U.S. compliance market. Read →

EU leaders at the European Council summit called for accelerated legislation on the Market Stability Reserve to reduce excessive carbon price volatility and reaffirmed the ETS's role in the energy transition. They also directed the Commission to update its ETS2 impact assessment on road transport and heating fuels due to rising energy costs, without agreeing to any delay. The moves keep policy focus on stabilizing the EUA market while addressing member-state concerns over costs. Read →

Italy, Poland, Hungary, Slovakia and Czechia pushed at the Brussels summit to postpone ETS2 until 2030 amid surging energy prices, but the majority rejected any timetable change. Leaders instead agreed only to an updated Commission assessment of ETS2 design and safeguards plus faster MSR reform to limit price swings and electricity cost impacts. The outcome preserves the 2028 start while highlighting ongoing political tension over carbon pricing. Read →

A regenerative agriculture project spanning Czechia and Slovakia secured an A.pre ex ante rating from BeZero Carbon and expects to issue 109,029 soil carbon removal credits after first verification. The credits target the voluntary market as one of the larger recent soil-based removal offerings from the region. It adds near-term supply to a VCM segment seeking durable, high-integrity removals. Read →

EU leaders adopted summit conclusions overnight calling for accelerated talks on reforming the Market Stability Reserve (MSR) to reduce excessive carbon price volatility while preserving the ETS role in driving clean energy investment. The move comes as six countries push to delay ETS2 for transport and heating until at least 2030 amid energy crisis talks. Faster MSR reform could stabilize EUA prices and support compliance demand in the EU ETS. Read →

European carbon allowance prices slid lower in lacklustre trading on Thursday amid gloomy industrial production data, weaker gas and power prices, and forecasts for continued mild weather. The decline erases some recent gains and highlights sensitivity to near-term energy fundamentals. Mild weather reduces heating demand and power-sector EUA buying pressure. Read →

California issued roughly 1.3 million compliance-grade offsets in its second-largest bimonthly round year-to-date, mostly to mine methane capture projects, per state data published Wednesday. The supply addition supports compliance entities in the California-Québec market. Offsets help meet obligations and can ease pressure on CCA allowance demand. Read →

Speakers at the Carbon Forward Expo said the EU and UK are moving closer to linking their emissions trading systems at the November bilateral summit. A CBAM exemption for UK exports is a key incentive for London. Linkage would increase liquidity and reduce compliance costs for covered entities. Read →

The EPA proposed reallocating 100% of 770 million RINs waived for small refineries in 2025 to larger refiners' 2026 and/or 2027 obligations. Two options are under comment: split evenly or all to 2027. The move aims to protect biofuel demand ahead of November elections; RIN prices eased on the news. Read →

EUA prices eased Wednesday despite funds building net longs to an eight-week high. Weakening European energy prices and soft US economic data weighed on the market. Many traders were absent at the London expo. Read →

RGGI Allowance futures returned to levels around the $40 mark over the last week and stayed within recent ranges. The market is entering shoulder season with limited directional momentum. Prices reflect balanced supply-demand amid seasonal power demand shifts. Read →

California’s regulation requiring large companies to disclose GHG emissions took effect Monday after state approval. The first Scope 1 and 2 reporting deadline is November 10, 2026, for U.S. firms with over $1 billion revenue doing business in the state. The rule boosts transparency and may influence compliance strategies in linked carbon markets. Read →

France is delaying EU ETS2 implementation under pressure from the far-right to avoid backlash before next year’s presidential election. It continues measures supporting electric mobility and heating that drew Brussels praise. The move adds uncertainty to the 2028 launch of the buildings and road transport carbon market. Read →

European carbon prices rose Monday to their highest since late January, with aggressive buying as environment ministers debated EU ETS reforms in Brussels. UKA prices surged in the afternoon to match the gains, supported by rising energy markets and optimism over a potential EU-UK emissions trading deal at next month's summit. The moves reflect concrete policy momentum lifting both EUA and UKA benchmarks. Read →

The EU's 27 environment ministers backed the ETS as a decarbonisation and competitiveness tool at Monday's Luxembourg meeting but remained divided on the pace of post-2030 emissions cuts, industry support via free allowances, and whether to reopen or adjust the separate ETS2 scheme for buildings and transport. The first formal debate on the July Commission proposal highlighted fractures ahead of a potential December deal under the Irish Presidency. The outcome keeps near-term policy uncertainty elevated for EUA supply and pricing. Read →

EU member states issued nearly 85% of scheduled 2026 free EU Allowances to industrial installations in the two weeks ending Oct. 8, per European Commission data. Free allocations support compliance entities and influence net demand in the EUA market. Steady progress reduces uncertainty around 2026 supply. Read →

EU carbon prices rose marginally on Oct. 9 but recorded a solid weekly gain, trading in a narrow range and focusing on technical support while ignoring broader energy volatility. The Dec contract maintained its position above key trend lines. This reflects resilient positioning ahead of policy clarity. Read →

EU finance ministers called for phasing out fossil fuel subsidies ahead of COP31 and approved measures to limit price volatility in the upcoming ETS2 for road transport and heating fuels before its 2028 launch. The steps aim to stabilize the new market and align with broader climate goals. ETS2 futures saw increased trading activity. Read →

A late-session buying surge lifted EU allowance prices back above the March bullish trendline, reversing five days of weakness. UKA prices climbed to an eight-month high on optimism that the EU and UK will finalize a linking agreement next month. The moves highlight how policy linkage expectations are supporting near-term compliance prices in both markets. Read →

Virginia’s Department of Environmental Quality updated its post-2026 RGGI Model Rules to align with the Third Program Review. Regulations are slated for publication in mid-October. The step supports ongoing implementation after the state’s July 2026 return, which has coincided with higher allowance prices in recent auctions. Read →

California Carbon Allowance benchmark futures edged higher toward $33 while Washington Carbon Allowance futures also rose, narrowing the spread between the contracts. Activity reflects investors positioning for longer-term supply tightness ahead of linkage effects and tighter budgets. The moves occur amid broader North American compliance market stability. Read →

The UK and EU reached an agreement to link their emissions trading systems, with the deal expected to be unveiled at a bilateral summit next month, according to Politico. The news triggered a steep rally in UK allowances that spilled over to lift EUAs modestly in the final hours of trading. Linkage would increase liquidity and reduce price volatility for both markets while easing CBAM frictions. Read →

EU carbon allowances turned a modest session loss into a 0.6% gain after bullish reports on EU-UK ETS linkage talks ignited UKA prices. EUAs had been edging lower on thin volume before the late buying. Prices remain range-bound near €85-87 amid ongoing policy debates on cap cuts and free allocation. Read →

Washington, California and Québec released a draft agreement to link their cap-and-invest programs into a single emissions market. The move expands North America's largest linked carbon market, promising greater liquidity, lower volatility and faster pollution cuts. Joint auctions and a common carbon price are expected once final approvals are complete. Read →

European carbon prices regained all ground lost in Monday’s sell-off through early-session buying that gave way to consolidation. Gains in equities and a strong day for natural gas lifted EUAs back into the recent €85.00-€87.00 range. The move keeps the benchmark anchored near recent highs amid ongoing policy uncertainty. Read →

RGGI-participating states will offer nearly 5% fewer allowances at the December Q4 auction while releasing more than 2 million additional units from set-aside accounts. The tighter primary supply follows the September auction that cleared at a record $37.65 per allowance. The adjustment tightens near-term scarcity in the 11-state market. Read →

Voluntary carbon market retirements totaled 30.6 million credits in Q3, down 9% year-on-year, yet market value climbed to $211.8 million as the average price paid rose to $6.92 per tonne from $5.66. Investment-grade credits captured a disproportionate share of value, underscoring buyer selectivity. The shift away from volume-driven demand continues into 2026. Read →

EU carbon allowances fell more than €2 intraday on gloomy macro news, a weaker euro, stronger wind output and a technical breach, then staged a steady recovery that erased nearly all losses. Prices ended in the middle of their recent range. The move highlights short-term sensitivity to energy fundamentals and sentiment ahead of policy developments. Read →

RGGI allowances retreated below the $40 mark after rising a couple of dollars mid-last week as September ended. The pullback follows Virginia’s return to the program and recent auction strength. It underscores ongoing price volatility in the US Northeast power-sector carbon market. Read →

European Commission data showed stationary EU ETS installations at around 2.5% non-compliance after the latest surrender deadline. Non-compliance rates were markedly higher for aircraft and shipping operators. The figures indicate solid overall compliance but highlight enforcement gaps in newer sectors. Read →

The latest CFTC Commitments of Traders report shows managed money increased net long positions in California Carbon Allowances (CCAs) by millions of units while sharply narrowing their net short in RGGI allowances (RGAs). This positioning shift signals renewed speculative interest in North American compliance markets amid tightening supply dynamics from Virginia's RGGI re-entry and upcoming linkage steps. Read →

Washington state's Department of Ecology announced its Q4 auction will offer roughly 80% more allowances than Q3, the largest quarterly offering in the program's history. The increase stems from prior budget adjustments and sets the stage for greater supply ahead of expected 2027 linkage with California and Québec, potentially pressuring prices lower in the near term. Read →

COT data indicates investors flipped to a net long position in RGGI allowances for the first time since April, easing prior supply concerns after Virginia rejoined the program. The shift follows the September auction clearing at $37.65 per allowance, the highest on record, and reflects reduced bearish bets as the 11-state market absorbs new demand. Read →